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Regional and State Heterogeneity of Monetary Shocks in Argentina

Author

Listed:
  • Emilio Blanco

    (Banco Central de la República Argentina)

  • Pedro Elosegui

    (Banco Central de la República Argentina)

  • Alejandro Izaguirre

    (Universidad de San Andrés)

  • Gabriel Montes Rojas

    (Instituto Interdisciplinario de Economía Política de Buenos Aires - UBA - CONICET)

Abstract

This paper empirically investigates how economic activity in Argentina at regional and provincial (i.e., state) levels respond to central national monetary policy shocks, as given by a change in the interest rate. The rst result is that regional heterogeneity of monetary shocks exists in Argentina. At the regional level the long-term eects of increasing the interest rate are negative and statistically signicant. At the provincial level, 11 provinces show a negative and signicant impact of a shock on the interest rate over employment. However, there are 13 provinces in which the eect is not statistically signicant, including the City of Buenos Aires and Buenos Aires Province. Bayesian methods are implemented to study the discrepancies in the impact on dierent provinces.

Suggested Citation

  • Emilio Blanco & Pedro Elosegui & Alejandro Izaguirre & Gabriel Montes Rojas, 2019. "Regional and State Heterogeneity of Monetary Shocks in Argentina," Documentos de trabajo del Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET) 2019-39, Universidad de Buenos Aires, Facultad de Ciencias Económicas, Instituto Interdisciplinario de Economía Política IIEP (UBA-CONICET).
    • Handle: RePEc:ake:iiepdt:201939
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    Cited by:

    1. Facundo Sigal & Jorge Camusso & Ana Inés Navarro, 2022. "Argentine regions based on dynamic criteria," Asociación Argentina de Economía Política: Working Papers 4600, Asociación Argentina de Economía Política.
    2. Pedro Elosegui & Marcos Herrera‐Gomez & Jorge Colina, 2022. "Inter‐provincial trade in Argentina: Financial flows and centralism," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(6), pages 270-291, December.
    3. Facundo Quiroga‐Martínez & Esteban Fernández‐Vázquez, 2021. "Education as a key to reduce spatial inequalities and informality in Argentinean regional labour markets," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(1), pages 177-189, February.
    4. Andrés Niembro & Jésica Sarmiento, 2021. "Regional development gaps in Argentina: A multidimensional approach to identify the location of policy priorities," Regional Science Policy & Practice, Wiley Blackwell, vol. 13(4), pages 1297-1327, August.
    5. Herrera Gómez Marcos & Elosegui Pedro & Michelena Gabriel, 2024. "A multiregional and multisectoral analysis of trade flow and economic linkages in the Argentinean economic regions," Asociación Argentina de Economía Política: Working Papers 4739, Asociación Argentina de Economía Política.

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    More about this item

    Keywords

    Monetary Policy; Monetary Transmission; Regional Effects;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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